Instructions For Form P-1065 For Partnerships Doing Business In Pontiac (Page 2 of 3) in pdf

2”d closing price for traded securities) or the cost if the date

W o o d w a r d

under the Federal Internal Revenue Code, except that each

subsequent to January 1, 1968 is to the total time the property was

dependency exemption is $600 rather than the amount allowed

held.

through the Federal Tax Reform Act of 1969. A spouse may be

taken as an exemption on the partnership return only if such

Schedule F - Income (or Loss) from Rents and Royalties

spouse has no income subject to the Pontiac income tax.

Line 1.

Income or loss from rents from tangible property

Additional exemptions are allowed if the partner or his spouse is

located in Pontiac is taxable to both residents and non-residents.

65 or over, or is blind.

Lines 2, 3, and 4. Income or loss from royalties, and rents of

Total Tax. Column 5. The tax rate of %% for non-residents of

property located outside Pontiac is taxable only to residents of the

the City of Pontiac became effective January 1, 1968 and only

City of Pontiac.

applies to income earned on and after January 1,1968.

Partnerships with a fiscal year ending prior to December 31, that

Schedule G - Income from Other Partnerships, etc.

elect to file and pay the tax for their individual partners shall

Line 1. Enter here the amount taxable to residents only. If all

compute the tax for non-resident partners at %% and for resident

members of the partnership are residents it will not be necessary

partners at 1% on income earned by the partnership during the

to complete lines 2 and 3 of this schedule.

Enter the full amount

fiscal period covered by the return after January 1, 1968.

received from other partnerships in column 1. If any interest on

Credits. Column 6. Enter in column 6 payments made by the

governmental obligations or dividends from national or state bank

partnership for tax paid with a tentative return; for payments on

stock is included in the total, deduct such amounts in column 2 and

Declaration of Estimated Income Tax, any payments and credits

show the net amount in column 3.

made by the partnership on behalf of Pontiac resident partners for

Lines 2 and 3. Whenever the members of a partnership include

income taxes to any other municipality, if the income on which

both residents and non-residents of Pontiac it will be necessary to

such tax was levied is included in this return. Do not take credit

analyze the type of income received from other partnerships. This

for income taxes paid another municipality on behalf of partners

is necessary since the income received from such other

who are not Pontiac residents. The credit shall be the lesser

partnerships may include amounts for business activity in Pontiac

amount of either (1) the income tax paid the other municipality, or

and also amounts for business activity outside Pontiac. It may

(2) the amount of tax that would be due to the City of Pontiac on

also include amounts for dividends and interest. Some elements

earnings in the other municipality computed at the non-resident

of this income are taxable to both residents and non-residents,

rate.

some to residents only, and specifically exempt income (Sec. 32,

All credits of column 6 are to be distributed on lines 6a, b, and c

Ordinance 1573) is taxable to neither. Attach a schedule of your

and totaled on line 8. The total of line 8 must agree with the total

analysis or computations.

of column 6.

Schedule I - Summary of Schedules A, B, E, F, & G

Schedule C - Income from Partnership

Column 1. If additional first year depreciation is included in

Line 17. Use the same basis and method as used for Federal

Schedule C, line 17, and if the partners have unequal credits for

income tax reporting.

such additional first year depreciation (e.g. if one partner is single

See also the additional instructions for Schedule C on page 4 of

and one is married filing jointly for Federal income tax purposes)

the return.

the apportionment of income to partners in this column will require

special

computation.

Schedule A - Ordinary Income from Business

Line 2. If the Pontiac and/or Federal income tax has been

Tax Due or Refund

included as an expense in Schedule C, it should be added back

If the partnership has elected to pay the tax for the partners and

here.

payments and credits exceed the tax due, show

the amount of

such overpayment on page 1, line 10 and check the proper box on

Schedule B- income from Dividends and Interest

line 11 to indicate whether you wish the overpayment as a refund

Line 2. Interest from obligations of the United States, the

or as accredit on your estimated tax. Refunds will be made as

states, or subordinate units of government of the states is

quickly as possible, but please allow 90 days before making any

exempted from the tax. If it has been included in the total on line 1

inquiry. Refunds of less than one dollar ($1 .OO) will not be made.

it should be deducted here.

Tax due of less than one dollar ($1.00) need not be paid.

Line 5. Use line 5 to exclude dividends and interest applicable

Assistance

If you have questions not answered in this instruction booklet,

to non-resident partners since dividends and interest are not

taxable to non-residents.

or if you need assistance in preparing your return, call (248) 758-

When the receipt of interest and other intangible income is

3236, or visit the Income Tax Division at City Hall. Inquiries in

writing should be sent to City Income Tax Division, 47450

directly related to the nature of the business, such interest, etc.

shall be considered as business income taxable to non-residents,

Avenue, Pontiac, Ml 48342-2245

and is to be reported on Schedule C rather than as dividends and

interest in Schedule B.

Schedule E - Sale or Exchange of Property

Gains and losses from the sale or exchange of property are

treated in the same manner, and the amount subject to tax

determined on the same basis as under the Federal Internal

Revenue

Code.

Only the amount of the gain or loss occurring from Jan 1, 1968

to date of disposition shall be recognized for purposes of the

Pontiac income tax. The amount of gain or loss occurring after

January 1, 1968 is to be determined by either (1) Computing the

difference between the January 1, 1968 fair market value (January

acquired was subsequent to January 1,1968,

and the proceeds

from the sale or exchange, or (2) by using the gain or loss for the

entire holding period, as computed for Federal income tax

purposes, and computing the taxable portion of such gain or loss

on the ration that the number of months held in the period

Instructions For Form P-1065 For Partnerships Doing Business In Pontiac Page 2

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